Construction Management & Equipments

1. Construction Management and
Equipments

2. Syllabus
• Construction Equipment:
• Introduction to Construction Equipment: Their
contribution and importance in construction Industry.
Classification of Equipment, Financial aspects related to
construction equipments: Discounted present worth
analysis, Depreciation, Cost of owning and operating
construction equipment, Basics of equipment replacement
policy.

3. Importance of Construction
Equipments
• In Case of major construction projects, the speed of work and
the timely completion of work is very important. Due to the
reason, the mechanization of most of the construction work is
required, in which the construction equipment play the most
important role. The proper use of the appropriate equipment
contribute to economy, quality, safety, speedy and timely
completion of the project.
• The cost of construction is a major factor in all the projects. The
factors that influence construction costs mainly are materials,
labour, construction equipments, overhead and profit.

4. Major Construction Projects

5. Importance of Construction
Equipments

6. Importance of Construction
Equipments

7. Importance of Construction
Equipments

8. Importance of Construction
Equipments
• The cost of construction equipment for civil
engineering construction projects ranges from 25 %
to 40 % of the total project.
• The amount which is invested in the purchase of a
construction equipment should be recovered during
the useful period of such equipment.

9. Importance of Construction
Equipments

10. Importance of Construction
Equipments
• If it is found that the purchase price of a particular
construction equipment is far less than the estimated
profit to the contractor due to its use on the project,
the contractor should purchase the same without
considering its further use or salvage value.
• The construction equipment are deployed on the
construction projects for the various reasons, such as

11. Importance of Construction
Equipments
• Cost-effective implementation
• For execution of work that is not feasible by manual efforts
or when deployment of construction equipments may help
in doing the work more efficiently.
• Large output can be maintained, even if there is a shortage
of skilled and semi-skilled manpower.
• Precession of implementation is done by using modern
construction equipments equipment equipped with
software control.
• The construction equipment and machineries of very high
capacities are available now and very large output are
possible due to mechanization, adhering to the
construction schedules.

12. Importance of Construction
Equipments

13. Classification of Equipments
• The Construction equipments are classified as below:
• The equipment are classified according to the type of
work it performs,
• Intermittent Type: This type of equipments have the
intermittent cycle of work. They can be operated on
series of work cycles and each cycle completes in
itself.
• Continuous flow type: This type of equipments have a
continuous flow of work turned out.
• Belt conveyors, pipelines, air compressor, etc. are the
example of continuous flow type equipments.

14. Concrete Mixers

15. Belt Conveyors

16. Classification of Equipments
• Mixed type
• This type of equipments have characteristics of
both, intermittent as well as continuous flow type
equipments.
• They are continuously operated over a defined
surface area. After completion of a particular
sweep, it requires operation cease and
readjustment of its position to resume production
on another area.
• Motor graders, bulldozers, scrapers, etc. are the
examples of mixed type equipments.

17. Motor graders, Bulldozers, Scrapers

18. Classification of Equipments
• The construction machineries or equipments can
be broadly classified into following types:
• Earth Excavating and transportation equipments
• Hoisting Equipments
• Conveying Equipments
• Drilling equipments
• Pumping equipments
• Compacting Equipments
• Pile- Driving Equipments

19. Earth Excavating and Transportation
Equipments

20. Hoisting Equipments

21. Conveying Equipments

22. Drilling Equipments

23. Pumping Equipments

24. Compacting Equipments

25. Pile- Driving Equipments

26. Classification of Equipments
• Depending upon their availability,
commercial sizes and specifications, the
equipments can be classified into following
types:
• (i) Standard Equipments
• (ii) Special Equipments

27. Classification of Equipments
• Standard Eqipments:
• The standard equipments are commonly manufactured
and are easily available to the prospective purchasers.
• They can be used for variety of construction operations
without any difficulty and they are available in standard
commercial sizes. The initial investment is less as
compared to a special equipment.
• The delivery of standard equipments is very quick, as it is
readily available in the market.
• The repair parts for standard equipment can be obtained
more quickly in short period.
• If the contractor no longer needs a unit of standard
equipment, he can usually dispose of it more easily and at a
more favorable price than a piece of special equipment.

28. Standard Construction Equipments

29. Standard Construction Machineries

30. Classification of Equipments
• Special Equipments:
• The special equipments are those which are
manufactured for a specific project or which does not
have readily accessible spare parts.
• The selection of special equipments should be made
carefully after proper financial analysis.
• The initial investment in case of special equipment is
very high and there is risk of change in design, it
cannot, be used economically on the other project.

31. Special Construction Equipments

32. Special Equipments
• A special order is to be given to the manufacturer of
special equipments and a special price is to be given
and therefore the delivery of special equipments can
be obtained after long period.
• Examples of special equipment include tunnel-
boring machines, large hauling units and very large
shovels, such as a 70 to 80 cubic metre shovel used
to strip-mine coal.

33. Special Construction Equipments

34. Selection of Equipments
• The various factors to be considered, while selecting the
construction equipment are as follows:
• Standard Type of Equipments:
• The contractor should confine their purchase to standard
equipment unless a project definitely justifies the purchase of
special equipments.
• Replacement of Parts: Prior to purchasing equipments, the
buyer should determine where spare parts are obtained.
• If the parts are not obtainable quickly, it may be wise to
purchase other equipment, for which the parts are quickly
available, even though the latter seems less desirable.

35. Selection of Equipments

36. Selection of Equipments
• Operating Costs: The most efficient and therefore the
most economical equipment is one whose operating
cost is the minimum. This is a fullproof measure for
selection of the equipment.
• Utilization of Equipments: The maximum utilization
of the existing machine should be done to reduce the
cost of production of various items of the project.

37. Selection of Equipments
• Availability of Equipment: Sometimes the
selection of equipment has to be made from
the available equipment held with the
manufacturers or dealers.
• Source of Equipment: Contractor and other
users of construction equipment frequently
are concerned with a decision as to whether
to purchase or rent (Lease) equipments.

38. Selection of Equipments

39. Selection of Equipments
• Country of Origin:
• As far as possible, indigenous equipments should be used.
This encourages the industry of the country and saves
foreign exchange. When imports have to be resorted to,
they should be preferable restricted to soft currency area.
• Operating Facility: The equipments chosen for project
should be such that the trained operators fpr the machine
are available.
• Suitability of Equipment for Future:
• While selecting an equipment, the useful life of the
equipment should be compared with the duration of the
project.
• If the life of the equipment is longer, it should be possible
to use the equipment for other projects.

40. Selection of Equipments

41. Selection of Equipments

42. Aspect Related to Finance
• How to Arrange Finance:
• When the contractor place the equipment purchase order to the
manufacturers, the majority of the manufacturers, demand 10 to
30 % advance with orders, without any commitment of delivery
period
• The arrangement of finance can be done from the advances
given by the project authorities or from the advances given to
the contractor on equipment purchase.

43. Aspect Related to Finance
• Now a days, the contractors are allowed for
advances on new equipment to be purchased
in case of all major contracts.
• In some cases, even foreign exchange is made
available in contracts for import of
equipments and spares.
• The finance can also be arranged from
Industrial Development Banks and leasing
Companies

44. Aspect Related to Finance

45. Buy or Hire
• A Piece of Equipment may be employed on a
project, in one of the following two ways:
• 1. Direct Purchase
• 2. Hiring

46. Direct Purchasing
• If the equipments are to be used frequently for
many types of jobs for a long duration of time
on a project, it will be economical for the
contractors to purchase the equipments.

47. Advantages of Purchasing a Equipment
• The construction equipment would be available at
all times for deployment.
• These equipments could be used in other projects as
required according to the conceived programme.
• The cost of such equipments could be apportioned
among different contracts.
• It is always economically operated and can be
maintained properly

48. Advantages of Purchasing a Equipment

49. Dis-advantages of Purchasing a
Equipment
• If the equipment purchased by the contractor becomes
obsolete or if another equipment is available with
superior performance, the contractor cannot take
advantage of such situation.
• The sum invested for purchase of equipment will be
blocked and can not be available for another purpose.
• The disposal of equipment after the project completion
becomes difficult due to modernization of machinery.
• The owned equipment may be utilized by the
contractor beyond its economical life, thereby
reducing his profit.
• The purchased equipment remains idle during the
period of no work.

50. Dis-Advantages of Purchasing a
Equipment

51. Hiring
• If the project is small and if the equipment is
to be used for a short duration of time on the
project, it will be economical for the
contractor to get it by hiring or by renting
from other agencies.

52. Advantages of Hiring
• The equipment could be rented as and when required
for a calculated period of time.
• The hiring agencies are responsible for repair,
replacements and even operation depending on the
contractual terms.
• On completion of the hiring period, the executing
agency would be liability-free of the rented items.
• The sum to be invested for the purchase of equipments
can be diverted to the other projects.
• There is no fear of obsolescence of equipments and full
advantage of rented equipment can be taken by the
contractor.

53. Advantages of Hiring

54. Hiring
• But, the rented items of equipments should not be
left idle for a long period, otherwise it will be
uneconomical to use.
• Sometimes, the combined method of partly
purchasing and partly renting the selected
equipment may be advantageous.
• For instance, the equipment may be hired initially
and then subsequently, if found useful, it can be
purchased, considering the various aspects of the
project, works on hand, further prospects of getting
works, available funds, storage space for equipment,
loss due to non-availability of equipment, hiring,
charges, etc.

55. Depreciation
• Depreciates can be defined as the loss or decrease in
the value of the property due to the use, life, wear
and tear, decay and obsolescence.
• As the equipment which is purchased today will not
work for ever. This may be due to wear and tear of
the equipment or obsolescence of technology.
• Hence, it is to be replaced at the proper time for
continuance of any business. The replacement of the
equipment at the end of its useful life involves
money. This must be internally generated from the
earnings of the equipments.

56. Depreciation

57. Depreciation
• The recovery of money from the earnings of an
equipment for its replacement purpose is called
depreciation fund, since we make an assumption
that the value of the equipments decrease with the
passage of time.
• Thus, the word, depreciation means decrease in
value of physical assets with the passage of time.

58. Depreciation Fund

59. Thanks…